Diving for pearls: Nine global funds worth considering
By , 25 Nov 16
With 267 funds, the Investment Association (IA) Global sector is second only in variety to its UK All Companies, which comprises 269 funds. It is one of the oldest and most popular sectors and also very diverse, both in terms of type of offering and also in terms of performance.
Newcomers
Innovation can provide businesses with an edge over competitors, and that is exactly what this Guinness Global Innovators Fund seeks. Innovation is often seen as technologically driven but Guinness sees it in a wider context and believes it can be found in most industries. However, IT is the largest sector weighting at 48%. Having a distinctive product, brand or service is increasingly an imperative in a globalised world. The fund is co-managed by Ian Mortimer and Matthew Page.
Small caps have greater potential than large caps long term, and the opportunity set is huge, so it is good to see Hermes Global Small Cap Equity launch into this space. The focus is on developed markets and seeking undervalued opportunities. It is early days but performance has been strong and above the average for the Global sector since its launch.
Like Ardevora Global Equity, the Global Long Only Fund has a process based on behavioural studies of three groups of people: investors, analysts and company managers. Unlike Global Equity, it is not a 150/50 fund, so has no short book, but it is repositioned quarterly. The fund is multi-cap with a mid-cap bias, mega and large caps providing the other exposure. The positioning of the two funds is similar but not identical.
Tags: Investment Association | Investment Strategy | Rowan Dartington
